# kaal:claim:2808132-021

**Claim.** Regulatory timing under disruptive innovation is a two-sided failure: regulating too early risks inhibiting innovation, while withholding regulation too long risks harm to consumers and markets once regulatory inertia sets in around the disruptive product or service.

**Type.** failure  **Support.** argued

**Holds when.**

- disruptive products or services not yet settled in the market

**Source quote.**

> The timing of regulation in an environment of disruptive innovation should be a primary concern for policy makers. If policy makers regulate too early, they risk inhibiting innovation; if they withhold regulation too long, they may harm consumers and

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *How to Regulate Disruptive Innovation - From Facts to Data* (2016), III.3 Timing, page 19

**Cite as.** Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132

**Verify.** sha256 of source PDF `3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Vermeulen%20-%202016%20-%20How%20to%20Regulate%20Disruptive%20Innovation%20-%20From%20Facts%20to%20Data.pdf

**Failure mode.** Timing dilemma of premature versus delayed regulation  (family: regulatory-lag)

**Topics.** innovation

**Keywords.** regulatory-timing, innovation-chilling, regulatory-inertia, consumer-protection

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2740477-019

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